Tenant Fees Bill - referencing, inventory fees

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    #31
    Originally posted by KTC View Post
    Tenant Fees Bill received Royal Assent today, so is now the Tenant Fees Act 2019.
    http://www.legislation.gov.uk/ukpga/...ntents/enacted
    I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

    Comment


      #32
      Originally posted by KTC View Post
      That include reasonable labour cost.
      But not, I believe, labour by the LL.

      Comment


        #33
        Originally posted by MdeB View Post
        But not, I believe, labour by the LL.
        Why not..?
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #34
          As an agent in Manchester our plan will be to revise our setup/finding fees, increasing by £125. As a guide our managed service setup fee is £375 at the moment. Currently tenants pay an application fee of approximately £125 each, we don't charge them anything else (no renewal fees, check out, inventory etc). We've never received complaints for over charging and do believe that a service worth paying for is provided to our tenants.

          Management fees won't be changing and we don't charge a renewal fee to let only clients, unless replacement paperwork is needed, for which £75 is charged.

          Unfortunately the actions of largely corporate agents has resulted in a blanket ban, with no thought on the consequences. Rents will increase and we're seeing dozens of landlords exit the market, which is in line with the end game; return stock to occupiers rather than small investors.

          Hopefully Government will outlaw bank charges and mortgage fees next! Never going to happen.
          <a href="http://www.manchesterpropertygroup.co.uk/" target="_blank">Manchester letting agents</a>

          Comment


            #35
            Originally posted by jpkeates View Post
            Why not..?
            Schedule 1, para 4
            (3)If, in the case of a payment required to be made to a landlord or letting agent in respect of a relevant default within sub-paragraph (2)(a), the amount of the payment exceeds the costs which—
            (a)are reasonably incurred by the landlord or letting agent as a result of the default, and
            (b)are supported by evidence in writing which is provided to the person on whom the requirement to make the payment is imposed,
            the amount of the excess is a prohibited payment.
            Landlord labour is not a cost.

            Comment


              #36
              Landlord travel costs might be though

              Comment


                #37
                Originally posted by DPT57 View Post
                Landlord travel costs might be though
                Yes, but then you get into "what is reasonable?".

                Is the HMRC rate reasonable?
                Is a contribution to fixed overheads reasonable (insurance, tax, MOT, servicing...?
                Are only "usage" costs (petrol, tyres, depreciation for mileage...) reasonable?

                Comment


                  #38
                  Originally posted by MdeB View Post
                  Yes, but then you get into "what is reasonable?".

                  Is the HMRC rate reasonable?
                  Is a contribution to fixed overheads reasonable (insurance, tax, MOT, servicing...?
                  Are only "usage" costs (petrol, tyres, depreciation for mileage...) reasonable?
                  If travel cost is allowed, then HMRC mileage rate must be considered reasonable. The mileage rate includes overheads like insurance and tax, so you can't add it in on top.

                  But then, depending on your property letting activities, you can claim the mileage from HMRC. I don't imagine you can claim relief on the one hand from HMRC, and charge the same to your tenant.

                  I don't think the rules should or would be different based on whether your property letting activities allows you to claim the travel from HMRC, so I doubt travel can be charge to the tenant.
                  I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                  Comment


                    #39
                    The correct treatment for tax would take care of that because any charges to the tenant are income.
                    So you'd pay tax on them and offset that by claiming the allowance.

                    So you can charge the tenant, assuming that's justified by the situation and you're not ducking any tax due.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment

                    Latest Activity

                    Collapse

                    Working...
                    X